Swiss Reinsurance Company

Mythenquai 50/60
P.O. Box
8022 Zurich
Switzerland
Telephone 043 285 2121
Fax 043 285 2999
www.swissre.com
August 31, 2007
Guarantee
To: U.S. Bank, National Association (the Beneficiary), not in its individual capacity, but solely as trustee on
behalf of the Lehman XS Trust Mortgage Pass-Through Trust Certificates, Series 2007-16N (the Rated Securities)
1.
The undersigned, SWISS REINSURANCE COMPANY, a Swiss company (the "Guarantor"), hereby
absolutely and unconditionally guarantees the prompt payment as and when due of all obligations of its indirect,
wholly-owned subsidiary SWISS RE FINANCIAL PRODUCTS CORPORATION, a Delaware corporation ("THE
GUARANTEED SUBSIDIARY") under, in connection with or ancillary to an ISDA Master Agreement, the
Schedule, the Interest Rate Cap Confirmation (#1864820), the Interest Rate Swap Confirmation (#1864746) and the
Credit Support Annex, each dated as of August 31, 2007 between the Beneficiary and THE GUARANTEED
SUBSIDIARY as amended or restated from time to time (the Agreements) which support the issuance of the
Rated Securities. In this Guarantee these obligations are referred to as the Guaranteed Obligations. This Guarantee
is given solely for the benefit of, and is enforceable only by, the Beneficiary or any trustee as assignee of the
Beneficiary to which this Guarantee has been validly assigned in accordance with applicable law and who is acting
as trustee for the investors in the Rated Securities.
2.
This Guarantee constitutes a Guarantee of payment and not of collection and is not conditional or
contingent upon any attempts to collect from, or pursue or exhaust any rights or remedies against, THE
GUARANTEED SUBSIDIARY. A demand for payment hereunder may at the Beneficiarys option be made in
writing addressed to the Chief Financial Officer of the Guarantor. This Guarantee is not however dependent in any
way on the manner of the demand for payment. Delay in making a claim will not affect the Guarantors obligations
under this Guarantee unless the relevant legal limitation period has expired.
3.
This Guarantee constitutes, and is intended by the Guarantor to constitute, an unlimited non-accessory
undertaking (unbeschrnkte, nicht akzessorische Verpflichtung) within the meaning of Article 111 of the Swiss
Code of Obligations (CO) and is not a mere surety (Brgschaft) within the meaning of Article 492 et seq of the
CO.

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4.
Notwithstanding any reference to the obligations of THE GUARANTEED SUBSIDIARY, the Guarantors
obligations under this Guarantee are its absolute and independent obligations as a primary obligor. Payment of a
claim hereunder is required as soon as the Guaranteed Obligations are due and payable.
5.
To the extent that any event or circumstance would give rise to any legal or equitable discharge, defence or
other rights of the Guarantor under this Guarantee, but which event or circumstance would not give rise to any
discharge, defence or rights of THE GUARANTEED SUBSIDIARY under the Agreements, the Guarantor hereby
fully waives, subject to paragraph 7 below, such discharge, defence, or rights and the Guarantors liability hereunder
shall continue as if such event or circumstance had not arisen.
6.
The Guarantor further agrees, subject to paragraph 7 below, that to the extent that any event or
circumstance gives rise to any legal or equitable discharge, defence or other rights available to both the Guarantor
under the Guarantee and THE GUARANTEED SUBSIDIARY under the Agreements, the Guarantor hereby agrees
to waive such discharge, defence or other rights against the Beneficiary, until such time as all the Guaranteed
Obligations in relation to the same event or circumstance have been fully met as required to protect investors in the
Rated Securities.
7.
Notwithstanding any other provision of this Guarantee, the Guarantor will have the right, prior to making
any payment under this Guarantee, to (a) assert such rights of offset as are set forth in the Agreements to the extent
that such rights relate to amounts due and payable by the Beneficiary to THE GUARANTEED SUBSIDIARY and
not to amounts which are subject to dispute; and (b) defend manifestly fraudulent claims under this Guarantee made
by the Beneficiary.
8.
This Guarantee will continue in full force and effect in relation to all Guaranteed Obligations until all the
Guaranteed Obligations have been satisfied in full. For the avoidance of doubt, all Guaranteed Obligations entered
into by THE GUARANTEED SUBSIDIARY during the term of this Guarantee shall be honoured in accordance
with this Guarantee and shall be binding on the Guarantor and its successors and assigns. This Guarantee may be
amended only as necessary to reflect changes to the Guaranteed Obligations which are validly agreed to by the
Beneficiary in accordance with the terms of the Rated Securities, including any requirement to obtain the consent of
some or all of the investors in the Rated Securities.
9.
If any payment by THE GUARANTEED SUBSIDIARY is avoided, recaptured or reduced as a result of
insolvency or any similar event affecting creditors rights generally having occurred in respect of THE

GUARANTEED SUBSIDIARY, the Guarantors liability under this Guarantee shall continue as if the avoided,
recaptured or reduced payment had not occurred.
10.
Upon payment by the Guarantor to the Beneficiary of any amount due under this Guarantee, the
Guarantor shall be entitled to require the assignment to it of the rights of the Beneficiary against THE
GUARANTEED SUBSIDIARY to the extent satisfied by such payment, and the Beneficiary will take at the
Guarantor's expense such steps as the Guarantor may reasonably require to implement such assignment. The
Guarantor shall not exercise any rights against THE GUARANTEED SUBSIDIARY which it may acquire in
consequence of such payment and assignment unless and until all the Guaranteed Obligations to the Beneficiary
shall have been paid in full.

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11.
This Guarantee is governed and will be construed in accordance with Swiss law. The exclusive place of
jurisdiction for any legal proceeding hereunder shall be Zurich, Switzerland.
IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be executed in its name as of the 31st day of
August 2007.
SWISS REINSURANCE COMPANY

Andr Pfanner
Director

Urs Bucher
Director